Temiscaming, QC-based Tembec reported that it had successfully concluded negotiations with CEP local 448 representing workers at its Chetwynd, BC highyield pulp mill. The new agreement will be for a term of five years and was reached following what the Company termed "very straightforward negotiations". Tembec also indicated that, with the agreement in place and market conditions for pulp improving, the Chetwynd mill would restart in January.

"This is an important agreement for all parties associated with the Chetwynd mill. The last couple of years have been extremely challenging for the pulp industry and, while we are seeing positive momentum relative to demand and pricing, the stability that this five-year agreement will bring is critical for employees, suppliers and customers," said Yvon Pelletier, executive vice-president and president, pulp group, in a statement. "With this agreement in place and with the ongoing support from the majority of our key suppliers, it is our intent to restart the Chetwynd mill in January and have it ramp up to full production by February."

The Chetwynd mill, which produces high-yield pulp and has an annual capacity of 240,000 tonnes, had been shut down since February 2009 due to market conditions. It employs about 160 people, of whom 115 are covered by the new collective agreement. The mill also provides employment for 35 First Nation workers through their company, Three Nation Ventures. www.tembec.com.